Gap and Philips 66 Among Recent Insider Buys

Latest trade makes Buffett, Berkshire Hathaway top shareholders in Phillips 66

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Sep 05, 2015
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The All-In-One Guru Screener can be used to find insider buys over the last week by clicking on the Insiders tab and changing the settings for All Insider Buying to “$1,000,000+” and duration to "August 2015."

According to the above filters, the following are the recent buys from company insiders over the last week of August.

On Aug. 27, Jeffery James Krueger, who now holds more than 10% of National Energy Services Inc (NESV), bought 1,583,462 shares at an average price of $0.13 and a total cost of $200,000. Since that buy, the price of the stock has tanked by 15.40%.

The company has an institutional ownership of 7%.

The price of NESV has tanked by 98% during the last 12 months and is trading with a very low P/B ratio of 0.11 and an even lower P/S of 0.03. The company has negative returns with ROA -7.25% and ROE -228.27%. Financial strength is rated 3/10 and the company has many problems to pay its debts with the cash it produces, since the cash to debt ratio is 0.01%.

On Aug. 28, Softbank Group Corp. kept on buying shares of Sprint Corp. (S). It bought other 16,795,982 shares at the price of $4.89 with a total cost of $82,132,400. The investor is increasing its stake as reported in my previous articles (1,2).

On Aug. 28, three insiders bought shares of Gap Inc. (GPS). The insiders are John J. Fisher, who bought 5,029,850 shares; William Sydney Fisher, who bought 4,929,504 shares, and Robert J. Fisher, who bought 3,083,769 shares. All bought Gap at the price of $33 per share, with a total cost of $430,423,000.

The company has an institutional ownership of 55% and an insider ownership of 11%.

The price of Gap has dropped by 29% during the last 12 months and is trading with a very low P/E(ttm) ratio of 11.60 and an even lower P/B of 5.17. The company has a good profitability, with positive returns, ROA 14.85% and ROE 39.35%. Financial strength is rated 8/10 thanks to an acceptable cash to debt of 0.91 and a high interest coverage of 27.77. These ratios are ranked lower than 55% of its competitors.

Larry Robbins (Trades, Portfolio) is the main shareholder of the company with 5,994,495 shares amounting to 1.44% of outstanding shares of the company and 0.91% of his total assets. On second position James Barrow (Trades, Portfolio) holds 0.53% of outstanding shares, followed by Edward Lampert (Trades, Portfolio) with 0.49%.

On Aug. 28, Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial), which has now more than 10% of ownership in Phillips 66 (PSX), bought 3,175,041 shares of the company at the price of $74.68 per share and a total cost of $237,112,000. Since that buy, the price of the stock has risen by 5.1%.

The company has an institutional ownership of 74%.

The price of Phillips 66 has dropped by 10% during the last 12 months and is trading with a very low P/E(ttm) ratio of 10.04 and an even lower P/B of 1.87. The company has a good profitability, with positive returns, ROA 8.72% and ROE 19.84%. Financial strength is rated 9/10 thanks to a good cash-to-debt of 0.57 and a high interest coverage of 22.61. These ratios are ranked lower than 58% of its competitors.

After this trade, Warren Buffett with his Berkshire Hathaway is the main shareholder of the company with 10.70% of outstanding shares, followed by James Barrow (Trades, Portfolio) with 3.35% and First Eagle Investment (Trades, Portfolio) with 0.91%.

On Aug. 31, JAB Cosmetics B.V., which has now more than 10% of ownership in Coty Inc. (COTY), kept on buying shares of the company. It bought 544,200 shares at the price of $29.65 per sharewith a total cost of $16,135,500. You can read about previous buys in my previous articles (1, 2).